International lending in the long run: motives and management

摘要: Foreign lending to sovereigns and companies has a long colorful history. This fact is both easy remember forget. Each time difficulties arise in international capital markets, observers invoke the precedent of debt crisis occasions publication scholarly studies citing parallels with crises past, making historical like this one cottage industry.2 At same time, repetition events suggests that each additional burst reflects decisions by investors who, if they are not ignorant history, fail use it inform their actions. In age 24-hour trading, typical investor complains, who reflect on history books? The relevance limited, moreover, changes structure financial intermediation, role played bond markets 1920s bank finance 1970s having given way equity finance, fundamentally altering process.